Sunday, November 3, 2019
Protest's effect on Honk Kong GDP
The protests in Hong Kong have have now cause 2 consecutive quarters of GDP growth with the 3rd quarter dropping 3.2% alone. This is a dramatic shift for the Hong Kong economy and the local government has described the recessions effect on the city as devastating. The slow down in growth has mainly been attributed to the on going protests for democratic freedoms that has been raging in the city for months. City leaders fear that the recession will only worsen as protests continue. Vacancy rates in hotels in the city are above 60% and the tourist industry, a huge economic driver for the city, has been crushed.
https://www.bbc.com/news/business-50204696
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This is a very intriguing topic for discussion, this brings up a couple of questions in my mind. Do you think that this economy will continue to consistently decline by the percentages that it did?
ReplyDeleteProtesting, especially to this extent can cause a significant impact on the tourism in such cities. The article also mentions that since tourists are staying away, retailers are "reeling" after five months of protesting that have dealt a devastating blow to those businesses. These are two large hits on GDP. Consumer spending has decreased significantly and they are not receiving money from tourism either.
ReplyDeleteWith clear negative economic implications, it will be interesting to see how long the protests last, and whether or not they are successful.
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